Solana price could move 10% north if it stays above this level

Solana (SOL) price has been on a steady flow since late August, as the broader market reacted to the US Securities and Exchange Commission (SEC) delaying decisions on spot BTC Exchange-Traded Funds (ETF) applications. Bitcoin price fell almost 7% to trade at $25,821 at the time of writing. For SOL, the slump sent the altcoin around 10% to the current auction price of 19.57.

Also Read: Bitcoin price likely to fall 10% from current levels this September, crypto analyst says.

Solana price nurtures an uptrend

Solana (SOL) price is nurturing an uptrend despite a bearish pull that has seen the altcoin drop around 2% in the last 24 hours. As a side note, crypto exchange FTX has transferred tokens worth more than $10 million from the Solana network to the Ethereum blockchain,. Solana executives urging FTX to distribute these tokens among community members.  

As social dominance grows for SOL, the token moves north, with momentum indicators to back it up. Notably, Solana price currently resides within the $19.85 to $19.41 demand zone, which is an order block often characterized by aggressive buying. Increased buying pressure from this zone could send the purported Ethereum killer up 10% to the $22.09 resistance level.  

This resistance level is significant for Solana price considering the 100-, 50- and 200-day Exponential Moving Averages (EMA) have populated around it at $21.70, $21.91, and $22.46, respectively. This makes it a dense supplier congestion zone, likely the turnaround point for the anticipated uptrend.

In a highly bullish case, Solana price could break past these resistance levels to retest the July to August highs at around $25.23. Noteworthy, the odds for such an outcome would increase if Bitcoin price shows strength.

Meanwhile, the Relative Strength Index (RSI) is moving up, which points to rising momentum. Similarly, the histogram bars of the Awesome Oscillator are edging toward the midline, adding credence to the upside.

SOL/USDT 1-day chart

Conversely, if Solana price breaks below the midline of the order block, otherwise referred to as the mean threshold at $19.15, the odds would tip in favor of bears. Invalidation of the current bullish thesis would occur if it makes a decisive daily candlestick close below it, potentially tagging the base of the order block at $18.41.

In the dire case, Solana price could drop to the $17.34 support level, or worse, go as low as $14.49, levels last seen around mid-June.

Notably, both momentum indicators are in dangerous zones, the RSI below 50 and the AO in the negative, leaving the SOL market susceptible to a bearish takeover. A drop below $18.41 would make the demand zone a bearish breaker.